Interest rates stay at 0.5% as Bank of England reassures markets

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The Bank of England postponed its announcement last week because of the general electionLewis Whyld/PA

Gráinne Gilmore

Last updated at 12:45PM, May 10 2010

The Bank of England has kept interest rates at a record low of 0.5 per cent
for the 14th consecutive month, it announced today.

The Bank’s Monetary Policy Committee (MPC), which postponed its rate meeting
and announcement last week because of the general election, also voted to
keep the limit on quantitative easing unchanged at £200 billion.

The move was widely expected by analysts, who said that the likelihood of any
change in rates was minimised further after the election delivered a hung
Parliament.

Graeme Leach, chief economist at the Institute of Directors, said: “Given the
political and fiscal uncertainty